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House Bill 421 — Appraisal management companies

House Bill 421 — Appraisal management companies

Lindsay Atkinson
February 12, 2020

Bill description: 0

Rating: HB 421 would change a requirement of those who own appraisal management companies. Instead of being “of good moral character,” they would have to be in “compliance with all minimum federal requirements.”

Does it increase barriers to entry into the market? Examples include occupational licensure, the minimum wage, and restrictions on home businesses. Conversely, does it remove barriers to entry into the market? 

The state of Idaho registers appraisal management companies, whose business is to determine the value of properties. These companies are registered by the Idaho Real Estate Appraiser Board.

Currently, the state can refuse to register an appraisal company if anyone who owns more than 10% of it “[i]s determined by the board not to have good moral character,” even though “good moral character” is never defined. HB 421 would strip “good moral character” from the requirements for company registration.


Does it violate the principles of federalism by increasing federal authority, yielding to federal blandishments, or incorporating changeable federal laws into Idaho statutes or rules? Examples include citing federal code without noting as it is written on a certain date, using state resources to enforce federal law, and refusing to support and uphold the Tenth Amendment. Conversely, does it restore or uphold the principles of federalism? 

HB 421 would replace the moral character requirement with one that calls for owners of AMCs to “be in compliance with all minimum federal requirements.” Since the bill has no “as of” date listed in reference to federal requirements as they are currently set, any changes to the federal government's requirements for AMCs in the future would automatically affect the requirements for AMCs in Idaho, without any oversight from the Legislature.


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